After the SNB- Swiss National Bank dropped the bombshell on the markets Thursday morning, the prices of the precious metals have gone in one direction… UP. In just two days, the price of gold is up $40 and silver $1.10.
According to Kitco, gold is currently up nearly $16 and silver $.80:
While gold was a big winner yesterday, silver is up the highest percentage today. Furthermore, the precious metals seem to be out-performing the Dow Jones Index. This week the Dow Jones is down over 2%, while silver is up 7% and gold 4.5%:
With the Swiss National Bank deciding to take the PAIN now (by dropping the EURCHF peg) instead of a much worse DISASTER later after the ECB prints money that would make Ben Bernanke jealous, this may be the factor that destroys the ability of the Central Banks to manipulate the precious metals.
The SNB deciding to break away from the Central Bank Policy of “ALL FOR ONE AND ONE FOR ALL”, is likely the straw that breaks the Fiat Monetary System’s back.
There is no way to predict how events will unfold in the coming weeks and months, but rest assured, extreme volatility will likely be case as more Central Banks figure out that it’s time to SAVE ONE’S ON SKIN.
This will probably be a very positive for the precious metals. It looks as is the SNB decision has finally destroyed the notion of $800 gold EVER AGAIN.
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